bebenomic - DAMPAK KENAIKAN BBM, tvri jatim 110922

Summary

The discussion explores the recent fuel price increase in Indonesia, examining its economic and social impacts. Drs. EC Bambang Budiarto, an economic observer from Surabaya, explains the global oil market fluctuations, rising subsidy burdens, and the domino effect of higher fuel costs on goods and services. The interview highlights government compensation measures, including BLT and social assistance, while emphasizing challenges in targeting subsidies effectively. Bambang stresses the resilience of Indonesian communities, particularly in East Java, where MSMEs play a crucial role as economic buffers. He advises households to adjust financially, work efficiently, and adapt to rising costs, highlighting the importance of both policy and personal preparedness.

Takeaways

• 😀 Fuel price increases have become a public concern due to the domino effect on the cost of other goods and services.
• 😀 Drs. EC Bambang Budiarto explains the anatomy of fuel pricing, noting how the world oil price significantly influences local fuel prices.
• 😀 The increase in fuel prices was inevitable after the Russia-Ukraine conflict pushed global oil prices to over $120 per barrel, with some fluctuations.
• 😀 The Indonesian government has faced a heavy financial burden due to fuel subsidies, which have tripled to over 500 trillion IDR.
• 😀 Compensation schemes, such as social assistance (BLT), have been introduced to mitigate the negative impacts of the price hikes on vulnerable groups.
• 😀 The real concern isn't the price increase itself but its far-reaching effects on various sectors of the economy, especially those directly linked to fuel, such as transportation and MSMEs.
• 😀 The government has faced public backlash, with protests from students and citizens due to the dramatic impact of fuel price hikes on everyday life.
• 😀 Mr. Bambang emphasizes that the current fuel price hike may not be the last one, as Indonesia faces a long-term shortage of oil supply in relation to demand.
• 😀 The Indonesian government needs to rethink the subsidy system, suggesting that subsidies should be directed towards people, not goods, to ensure that they reach the intended recipients.
• 😀 MSMEs (Micro, Small, and Medium Enterprises) are crucial for the economy, particularly in East Java, where they account for 57% of the regional GDP, making them vital for economic resilience during price hikes.
• 😀 Despite the economic strain, the people of East Java have shown quick adaptability, adjusting to price changes and managing financial decisions at the household level.

Q & A

What is the main concern regarding fuel price increases in the script?

The main concern is the domino effect of rising fuel prices, which leads to increases in other prices, putting a financial strain on the public.

How does Dr. Bambang Budiarto describe the impact of fuel price increases on the community?

Dr. Bambang highlights that the fuel price increase has widespread effects, causing disruptions across various sectors, from transportation to daily goods, and leading to protests and complaints from the public.

What was the fuel price situation in late 2021 according to Dr. Bambang?

In late 2021, the world oil price was assumed to be around $60 per barrel, but by February 2022, due to the Russia-Ukraine conflict, it spiked to $125 before stabilizing at around $90 per barrel.

What is the process Dr. Bambang explains regarding crude oil and its conversion to usable fuel?

Dr. Bambang explains that 159 liters of crude oil can produce around 134-135 liters of usable fuel, with the remaining portion being waste. The price of oil is then adjusted according to the market conditions.

What role do subsidies play in mitigating the effects of rising fuel prices?

Subsidies help buffer the financial burden of fuel prices, but Dr. Bambang mentions that the government’s subsidy program has become increasingly expensive, reaching over 500 trillion IDR, compared to the initial target of 170 trillion IDR.

How does Dr. Bambang evaluate the government’s compensation strategy for the fuel price hike?

Dr. Bambang mentions that while the government is providing compensation through various social assistance programs, there is concern that not everyone will benefit, particularly those unable to meet the eligibility criteria.

What are the concerns about the equality of the government’s compensation efforts?

The concern is that the compensation might not reach those most affected by the fuel price increase due to strict eligibility conditions, potentially leaving vulnerable groups without assistance.

What does Dr. Bambang say about the resilience of the Indonesian people in the face of the fuel price increase?

Dr. Bambang praises the resilience of the Indonesian people, noting that they have managed to adapt to economic challenges. However, he also warns that the fuel price increase could still lead to disruptions in various sectors.

How does Dr. Bambang suggest the Indonesian people adapt to the fuel price increase?

Dr. Bambang advises the public to adjust by finding more efficient ways of living, such as reducing energy consumption, working harder, and managing their finances better to cope with the rise in fuel prices.

What is Dr. Bambang’s perspective on the sustainability of the fuel price increases?

Dr. Bambang suggests that the fuel price increase may not be the last one, as Indonesia’s oil demand exceeds its domestic production, creating a reliance on imports that could lead to further price hikes.